Talk and Walk: Not Together – Dr.Narasimha Reddy Donthi

unfortunately, a few decision-making sections, ignorant as they are, consider it as a sunset industry. Of course, one needs to take note of the pressures created by mechanisation, modernisation and sophistication. In fact, actual problems of handloom weavers are different. To address them, the discussion has to go beyond subsidies and production statistics.

Dr.Narasimha Reddy Donthi

National Handloom Day on 7th August was picked up by the government, in 2017, for the potential it has in creating nostalgia and a strong of sense of Indian rural traditions and manufacturing ethos. However, subsequent governmental action in rejuvenating handloom sector falls far short of the needs of average handloom weaver. Despite a widely acknowledged fact that handloom sector is a big employer of rural people, unfortunately, a few decision-making sections, ignorant as they are, consider it as a sunset industry. Of course, one needs to take note of the pressures created by mechanisation, modernisation and sophistication. In fact, actual problems of handloom weavers are different. To address them, the discussion has to go beyond subsidies and production statistics.

Dr.Narasimha Reddy Donthi has been a passionate campaigner on environmental and development issues. He has contributed to public discourse and policy changes in electricity, seed, rice, cotton, sugarcane, sericulture, handloom and textiles, land, water and other related areas. He built campaigns, advocacy programmes and policy change projects.

He is an author, writing on different subjects in regional, national and international publications. He also guides students on their Ph.D and other research activities. email: nreddy.donthi20@gmail.com

A typical woman, in a handloom weaver household, works on various chores in handloom weaving since her childhood. However, she does not know that her work by Indian laws can be considered as a wage job, and she is entitled to a minimum wage. As per government notification, in 2016, in Telangana an unskilled worker should get a minimum wage of Rs.363 per day. And, at national level a skilled worker should get about Rs.850 per day. But, many handloom weavers earn less than Rs.100, often averaging Rs.50 per day. After toiling for years, many of these families do not own either a piece of land or house. In some places, due to mounting debts, families had to sell their houses and migrate.

After working for more than 10 hours every day for more than 20 years, typical family does not have their own house or handloom.

After working for more than 10 hours every day for more than 20 years, typical family does not have their own house or handloom. In some places, they have to pay Rs.100 as rent. Most families do not have ration cards. Widow do not get pension or any other benefits from the government. Deteriorating health and chronic health issues add to the burden of a miserable life.

A typical family in Chirala, of Andhra Pradesh, weaves 18 sarees per month, and earns Rs.1,500. This does not even suffice for their food needs, leave alone other requirements. Wages do not respond to the cost of living index, or inflation. Power loom products masquerading as handloom products have shrunk market shares. As a result, there has been extensive loss of work. Also, with the rise in hank yarn and other basic raw material inputs in the past five years, master weavers reduce wages, adversely impacting individual family economies. Average handloom family is caught in a vicious cycle, resulting in poverty, starvation and death.

Neglect of handloom sector by the government has created this situation. Lax enforcement of laws enacted to protect handloom products from unfair competition, ‘drying’ up of institutional credit for handloom production, rising input prices, corruption in handloom cooperatives and reduction in government budget for handloom sector have cumulatively led to such a situation. Governments continue to neglect. In Telangana, allocations to handloom sector have hit a nadir. Telangana government has clearly chosen to take the side of powerloom. In Andhra Pradesh, allocations are very low, except for cash transfer of Rs.24,000 per handloom per year, in the last 2 years.

Governments continue to neglect. In Telangana, allocations to handloom sector have hit a nadir. Telangana government has clearly chosen to take the side of powerloom.

India is known for its handloom products for centuries. It is one of the oldest industries. Given this, coupled with the size of India, one can see varied facets of this industry across the country, being interwoven with local cultural traditions. In North eastern States it is limited to the clothing needs of the household, and in other States such Andhra Pradesh, Telangana, Kerala, Tamilnadu, Assam and Orissa, handloom sector competes with the most modern textile industries. In South India, significant and popular handloom brands continue to attract consumers and most of them are in Andhra Pradesh and Telangana. Mangalagiri, Venkatagiri, Dharmavaram, Pochampalli and Gadwal handloom varieties have a market demand across India and in foreign countries too.

Handloom sector in most countries has vanished long back, in part due to competition. Refreshingly, in India, handloom weavers continue to eke out their living in substantial numbers. This indicates a favourable domestic market environment that sustains this high level of production. It is much beyond tourism-linked sales, as in a few countries. Indian Handloom sector has a turnover of Rs.60,000 crore, and a market demand of Rs.100,000 crore per year. Handloom exports have reached Rs.4,000 crores per year. More than 3 crore people were dependent on this sector. It is eco-friendly production, which has all the technological capacities within the country.

Despite an atmosphere of despair over its conditions, yet, there are many consumers in India who would like to see the robust growth of handloom sector.

Despite an atmosphere of despair over its conditions, yet, there are many consumers in India who would like to see the robust growth of handloom sector. The reasons for such desire are many including ideology, philosophy, sheer love for handloom products and economic arguments. Independent of these desire for its growth, handloom sector is undergoing changes.These changes are impacting on the working and living conditions of handloom weavers, despite policies, projects and aspirations arising out of various quarters.

Vulnerability on the rise

Their imagination of handloom sector does not go beyond the image of a famished weaver before a loom.

In this India, policy-makers have a different idea, and they continue to continue to nurture it beyond rationality and common sense. Their imagination of handloom sector does not go beyond the image of a famished weaver before a loom. Contribution of handloom weavers to Indian GDP, and India as a brand in foreign countries has never been quantified. Policy discussions do not refer to such statistics. Handloom sector invests more than Rs.25,000 crores on accessing cotton yarn, and Rs.9,500 crores on dyes and chemicals every year. Handloom production is dependent on private money lending to the tune of Rs.35,000 crores, and pays interests between 18 to 24 percent.

Despite such a huge contribution, budget for handloom sector was a mere 0.003 percent in national budget in 2013-14, and in 2016-17 its 0.0003 percent. Investment on handloom sector per metre was a mere 48 paise in 2008-09, while for the non-handloom 62 paise, and has not raised ever since. In comparison, government provides tax breaks, subsidies and incentives for MAITI (modern, automated Indian Textile Industry), other than budget allocations. This exceeds Rs.1,00,000 crore in the last nine years.

Handloom weavers are facing severe livelihood crisis because of adverse government policies, globalisation and changing socio-economic conditions, both at national and State levels. Suicides are on the rise. Ineffective implementation of the schemes, increasing unfair competition from the powerloom and mill sectors are some of the factors responsible for the crisis.

Demonetisation, GST on handloom products and corona pandemic related lockdowns and economic downturn have further impacted handloom livelihoods, severely.

Demonetisation, GST on handloom products and corona pandemic related lockdowns and economic downturn have further impacted handloom livelihoods, severely. Central and State governments did not seem it necessary to include them in relief schemes and stimulus packages. Even the allocation did not rise in 2021-22 in Union Budget and State budgets, despite widespread misery and representation on such misery.

National Neglect

Government seems to have run out of ideas. It is not even organising consultations. A welcome move has been the celebration of National Handloom Day, on August 7th. This celebration, initiated and actively participated by Prime Minister, Narender Modi, has raised lot of hopes and expectations among handloom consumers, producers and economists. Invoking tradition cannot remain a mere political slogan. There has to be meaningful action that responds to the needs of handloom weavers.

A ‘Make in India’ and ‘India Handlooms’ programme lie at the consumer end. Handloom weavers require basic support at production level. Their wages have to increase, incomes have to respond to living costs and families have to confidence in this livelihood.

BJP Manifesto promised to strategically develop labour intensive manufacturing. Per capita spending of the government on handloom sector, a labour intensive textile manufacturing section, spread all over India, does not exceed Rs.500. But, it is ready to spend Rs.1,000 crores on Self-Employment and Talent Utilization (SETU). With smaller investments in handloom sector, government’s target of encouraging self-employment would have been accomplished easily. Unfortunately, it does not realise this. Because of decline in public investments, thousands of handloom weavers are becoming poorer by the day, as their wages are not increasing.

Big Promise, Tiny Deliverance

Handloom weavers have been demanding for long for provision of access to low interest credit. Presently, to produce handloom products, they are borrowing money at exorbitant interest rates, ranging from normal to the bizarre, from 14 percent to 60 percent.

Previously, Loan waiver package of Rs.2,205 crores could not reach the needy handloom weavers to relieve them of debt burden.

Silk has been climbing rapidly in the last four years. With competition, from cheap and fake handloom products, wearing them down, handloom weavers had no way to increase their incomes to respond to raising costs of living and raw material prices.

Debt burden on individual handloom weavers has been for multiple reasons over which they do not have any control or say. Cost of living has increased in the last fifteen years steadily, and tremendously over the last few years, generously aided by inflation and under regulation of basic food commodity prices. Cost of raw material, especially cotton and silk yarn have also gone up. Prices of yarn have been climbing continuously. Silk has been climbing rapidly in the last four years. With competition, from cheap and fake handloom products, wearing them down, handloom weavers had no way to increase their incomes to respond to raising costs of living and raw material prices.

Further, the most critical component of their production, working capital flows are drying up from ‘traditional sources’ and institutional mechanisms.

Further, the most critical component of their production, working capital flows are drying up from ‘traditional sources’ and institutional mechanisms. NABARD the only comparatively cheap source of finances for handloom sector has drastically reduced its exposure. With the result, handloom weavers were forced to find ‘expensive’, private sources of finances. Interest rates at this level usually are higher and are not regulated. Lack of awareness, exploitative conditions compounds the misery caused by high interest rates.

Conclusion

Allocations for handloom sector have been fluctuating, wildly without any rhyme, reason or accountability over the past 20 years. There is no continuity. Schemes are introduced and withdrawn. Implementation has been shoddy. Expenditure is low, even though the allocations are pittance. There is no proper need assessment for handloom sector. Not even single paisa has reached handloom weavers. Handloom funds are being soaked up by institutions, employees, corruption, bad planning and low commitment.

Problems for handloom sector in budgetary allocations stems out of the perspective of Union Textile Ministry, framed as they are in Planning Commission approaches and lobbying by anti-handloom sector groups. In general, Ministers for Textiles are from either Gujarat or Tamilnadu, which boosts the prospects for exporters, spinners and textile mill lobbying. Even Secretaries have been pro-modern textile industry lobby.

Advocates for handloom sector are divided, and do not represent themselves as a lobby in the corridors of Textile Ministry. Handloom weavers are unorganized and have ceased to be a vote bank.

Advocates for handloom sector are divided, and do not represent themselves as a lobby in the corridors of Textile Ministry. Handloom weavers are unorganized and have ceased to be a vote bank. For this reason, governments have been bold in denying higher allocations even in the elections years. At the same time, textile business lobby has become stronger and stronger. Handloom weavers are still hanging on only because of their extreme-level of sacrifices.

Corona had severe impact on handloom sector and weaver livelihoods. Most of them have slipped into poverty. Unfortunately, there is no change in the budget for handloom sector, from the previous interim budget. It is a mere Rs.495.32 crores for the entire country, wherein handloom weavers are atleast 40 lakhs. Ms. Nirmala Sitharaman, a woman Union Finance Minister, who wears handloom sarees and has a good understanding of handloom products, failed to increase handloom budget allocations on par with the expectations.

Economic thinkers probably forgot about the importance of handloom sector in terms of employment potential, its positive impact on environment and a bulwark in stabilizing Indian economy

In a year, where economic recession was accepted, employment has spiraled down, purchasing power has taken a dent and rural consumption has nosedived, there were expectations that this budget would infuse funds into rural economy. Raising handloom budget was one route for this infusion, stabilizing economy, employment and environment. Economic thinkers probably forgot about the importance of handloom sector in terms of employment potential (especially in rural areas), its positive impact on environment (thus responding to responsible consumption and sustainable production) and a bulwark in stabilising Indian economy (non-handloom textiles are always volatile and monopolised).